Joint Development Agreement with Ecotech
The Rural Electrification Agency has entered into a Joint Development Agreement with Ecotech Development Nigeria Limited to establish a solar panel and battery assembly and manufacturing facility in Nigeria. The partnership aims to reduce the country's heavy reliance on imported renewable energy equipment and retain foreign exchange locally.
REA Managing Director and Chief Executive Officer, Abba Aliyu, disclosed the agreement in Abuja, noting that this is the first time a Tier-1 Chinese renewable energy company has committed to setting up manufacturing and assembly operations in Nigeria. Under the non-exclusive framework, the REA will facilitate the annual offtake of up to 200 megawatts of solar photovoltaic modules and 200 megawatt-hours of battery energy storage systems produced by Ecotech.
Ecotech Managing Director, John Zhao, stated that the company will provide locally assembled solar panels, battery storage systems, and hybrid inverters for residential, commercial, and industrial applications. The company will also offer engineering design, system integration, installation, and long-term maintenance services to support Nigeria's energy transition.
Rising Import Bills and Solar Capacity
Nigeria's reliance on foreign solar components has historically drained local resources. In 2023, solar panel imports were valued at over $200 million, which is equivalent to more than four million panels. By the first quarter of 2025, the value of imported panels surged to approximately N125.29 billion, according to data from the Nigerian Electricity Regulatory Commission.
Despite these high import figures, the country's off-grid capacity has expanded. In 2024, Nigeria added 63.5 megawatts of solar power, bringing its total installed capacity to 385.7 megawatts. However, the REA estimates that Nigeria still needs at least 5 million off-grid solar systems to adequately serve unpowered and underserved communities.
Procurement Guidelines and Economic Alignment
The REA clarified that the new agreement is a non-exclusive framework designed to promote local manufacturing and does not override existing public procurement regulations. Aliyu emphasized that every transaction will comply with procurement rules and be judged on price, quality, and reliability, rather than lowering standards.
The initiative aligns with President Bola Tinubu's target of building a $1 trillion economy by 2030 through private sector-led industrialisation. It also complements broader international support, such as the World Bank and African Development Bank Mission 300 program, which has connected over 50 million people to electricity across 40 countries.
Furthermore, the African Development Bank recently approved a $500 million loan to finance the second phase of Nigeria's Economic Governance and Energy Transition Support Programme, alongside a $100 million loan to the Emerging Africa and Asia Infrastructure Fund to boost sustainable infrastructure development.
